Block Analyst Ups Price Target For Stock Ahead Of Q4 Results: 'We Are Positive, Headed Into The Print…'

Zinger Key Points
  • Block's shares have risen about 15% year-to-date, and KeyBanc analyst sees about 40% incremental upside.
  • Analysts, on average, expect Block to report Q4 EPS of $0.30 and revenue of $4.6 billion, up roughly 12.7%.

Jack Dorsey-led Block Inc. SQ is scheduled to release its fourth-quarter results on Thursday after the market close.

The Block Analyst: KeyBanc Capital Markets analyst Josh Beck maintained an Overweight rating and raised the price target from $90 to $100, suggesting roughly 39% upside from current levels.

See Also: Best Fintech Stocks

The Block Thesis: “We are positive, headed into the print as SQ remains a key idea for us,” Beck said in a preview note.

Alternative data trends across the firm’s proprietary credit/debit card and app-based data sources across Square and Cash App look broadly consistent to slightly better than our model, the analyst said.

As such, the analyst said Block is poised to deliver a roughly in-line to a better-than-expected set of results. He raised the 2023 gross profit estimate for Block to $7.30 billion, ahead of the Street estimate of $7.24 billion.

The upward revision was premised on 29% Cash App gross profit growth, excluding Afterpay, which Block acquired in Jan. 2022, and Bitcoin BTC/USD, and 21% Square gross payment volume growth, the analyst said. He also expects a moderation in operating income growth due to the “lean” growth mindset that will likely be incorporated in 2023 planning, leading to above-consensus EBITDA.

The price target hike reflected KeyBanc’s upwardly revised estimates, he added.

Price Action: Block closed Tuesday’s session down 4.09% at $71.95, according to Benzinga Pro data.

Read Next: Block's Afterpay Launches Fresh 'Buy Now, Pay Later' Solution To Tap Holiday Season Volumes

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorCryptocurrencyFintechNewsPrice TargetPreviewsReiterationMarketsAnalyst RatingsTechTrading IdeasJack DorseyJosh BeckKeyBanc Capital Markets
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...